Sandvine Global Report: Internet Data Usage Up 120 Percent in North America

Netflix continues to dominate North American fixed networks with 33 percent bandwidth share

WATERLOO, ON, Nov. 7, 2012 /CNW/ - Sandvine, (TSX:SVC; AIM:SAND) a leading provider of intelligent broadband network solutions for fixed and mobile operators, today released its Internet traffic trends report, entitled "Global Internet Phenomena Report 2H2012 ", based on data from a selection of Sandvine's 200-plus customers spanning North America, Europe, Middle East and Africa, Caribbean and Latin America and Asia-Pacific.

Major findings from Sandvine's Global Internet Phenomena Report include:

Global data usage

• Mobile networks: The world leader of mobile data consumption is Asia with a mean monthly usage of 659 MB, up 10% in the last six months
• Fixed networks: Mean monthly data usage has increased by 120% from 23GB to 51GB in the past year on North American fixed line networks [51GB is equivalent to 81 hours of video]

"There is only one digital network being built today and that is the Internet," said Dave Caputo, CEO, Sandvine. "With a 120% growth rate there is no doubt that more communications service providers will be launching application-based pricing plans that provide cost certainty and a consistent quality of experience for high-demand applications. Understanding the application make-up of a network is a critical first step in launching new services."

Video streaming

• In Europe, YouTube represents more than 20% of peak period downstream traffic on mobile networks
• Netflix dominates North American fixed networks accounting for 33% of peak period downstream traffic
• Other video services on North American fixed networks include Amazon (1.8% of peak period downstream traffic), Hulu (1.4%) and HBO Go (0.5%)

"Audio and video streaming account for 65% of all downstream traffic from 9pm-12am and half of that is Netflix traffic [on North America fixed networks].   Prioritizing real-time applications like live audio and video is critical to maintaining a high quality of experience.  Sandvine's video quality metrics, including display and transport quality, will be key to understanding the impact of major events like the 2014 World Cup which will likely be the most streamed event in Internet history," said Mr. Caputo.

P2P File sharing

• BitTorrent continues to decline in application-share, accounting for 16% of total traffic in Europe and is slightly smaller in North America, accounting for 12%
• In Asia-Pacific, where there are fewer paid over-the-top video services available, BitTorrent accounts for 36% of total traffic

"Real-Time Entertainment continues to soar.  Since 2009 on-demand entertainment consumed more bandwidth than "experience later" bulk transfers and we project that trend to continue through 2015 when BitTorrent will shrink to less than 10% of total traffic," said Mr. Caputo.

Sandvine's Global Internet Phenomena Report is available at www.sandvine.com

GLOBAL INTERNET PHENOMENA REPORT METHODOLOGY
Sandvine's Global Internet Phenomena Reports are based on a representative cross-section of Sandvine's data from a selection of Sandvine's 200-plus customers spanning North America, Europe, Middle East and Africa, Caribbean and Latin America and Asia-Pacific.  Data is gathered over a one-month period and is completely subscriber-anonymous.  No identifiable information of any kind, including IP addresses are collected during the study.  Sandvine's network equipment analyzes data from an application utilization level and is not content aware.

ABOUT SANDVINE
Sandvine's network policy control solutions focus on protecting and improving the quality of experience on the Internet. Our award-winning network policy control equipment and software helps fixed and wireless and mobile operators better understand network traffic, manage network congestion, create new services and revenues, mitigate traffic that is malicious or undesirable to subscribers, deliver QoS-prioritized multimedia services and increase subscriber satisfaction. With over 200 service provider customers in over 85 countries, serving hundreds of millions of broadband and mobile data subscribers, Sandvine is enhancing the Internet experience worldwide. For more information, please visit: www.sandvine.com. 

FORWARD-LOOKING STATEMENTS
Certain statements in this release which are not historical facts constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements") and are made pursuant to the "safe harbour" provisions of such laws. Statements related to the scope of deployment of Sandvine's products by a specific customer, the potential revenue opportunity with any particular customer or in any market segment, the benefit's of Sandvine's products and services to be realized by customers, Sandvine's market position, future opportunities, product development plans and demand for Sandvine's products and services are forward looking statements, as are any statements relating to future events, conditions or circumstances. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements involve both known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Sandvine to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements.   These risks and uncertainties include, without limitation, changes in internal deployment strategies or plans by specific customers; the growth of broadband internet usage and levels of capital spending on broadband network management systems; the timing of orders and manufacturing lead times; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; increased competition in the broadband network equipment industry; dependence on the timely development and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks including dependence on key suppliers and key technologies; dependence upon indirect channel sales and resellers;  factors such as business and economic conditions and growth trends in the broadband network equipment industry and in various geographic regions; global economic conditions and uncertainties in the geopolitical environment including the impact of regulation related to the internet and the delivery of internet services. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and Sandvine does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.

Image with caption: "Internet traffic predictions for 2015 from Sandvine's Global Internet Phenomena Report (CNW Group/Sandvine Incorporated)". Image available at: http://photos.newswire.ca/images/download/20121107_C5667_PHOTO_EN_20243.jpg

SOURCE: Sandvine Incorporated

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